A personal or business bank account in Bali or the rest of Indonesia is crucial to facilitate transactions in Indonesia. As a foreigner relocating to Bali or opening a business in Indonesia, using your overseas bank account can lead to high transaction fees. Banks in Indonesia offer multi-currency bank accounts to facilitate your payment and issue invoices in Indonesia.

How to open a personal bank account in Indonesia?

The regulations in Indonesia authorise residents to open bank accounts there. Foreigners with a KITAS or KITAP can open a bank account in Indonesia. Foreigners with a tourist or business visa are not theoretically allowed to open a bank account in Bali or the rest of Indonesia. However, it has been a common practice for some banks to allow foreigners to open an Indonesian bank account with an Indonesian sponsor.

The documents needed to open a personal bank account in Indonesia:

Internet banking is working in Indonesia with local numbers. KITAS holders can obtain a permanent phone number by providing a copy of their passport to the telecom provider.

The procedure to open a bank account is fast, with the bank having a branch office in Bali and Indonesia. While in some countries, it can take a few days to get a debit card, the Indonesian bank provides access to the account and the debit during the registration process. The process can take less than 1 hour to use the application and get a debit card.

However, the difference between the two countries is that debit cards in Indonesia are very limited in some operations, such as physical payment and withdrawal. Indeed, some online systems reject the debit card during the payment process and require a credit card.

The process of getting a credit card in Bali or Indonesia depends on each bank. It requires some deposit and having a working contract or a business running for a while. This might be annoying for people who usually use their debit cards to pay online.

Some new online banks now provide virtual cards that you can use for online payment.

Also read: How to Register Trademark in Indonesia (2024 Guide)

How to open a corporate account?

open business bank account in Indonesia

After establishing a company in Bali, Lombok, or the rest of Indonesia, the important step is to open a corporate bank account in Bali or Indonesia to run and operate the business.

To open a corporate Indonesia bank account, banks require the following:

  • Akta of the company (deed)
  • Tax Card (NPWP)
  • SK (Ministry Approval)
  • NIB (Business Identification Number)
  • PKKPR
  • KITAS of the director
  • Indonesian Phone number

The person able to open the bank account is the director of the company and not the commissioner of the PT PMA. The director has to be a resident of Indonesia (KITAS holder). Some banks can assist in opening the bank account while the director is still in the process of acquiring its KITAS.

Procedure

The process of opening a corporate bank account in Bali takes a bit more time than opening a personal bank account, as some verification steps are necessary. 

Once the documents provided are approved, the bank will issue the bank account number in a maximum of 4 business days (usually 1 or 2 days) and require the shareholder to inject a minimum deposit. This deposit varies from bank to bank (OCBC can require 51 million IDR while BNI 10 million IDR). Some banks provide multi-currency accounts, but we suggest checking and indicating to customer service which currency you wish to open.

After receiving the deposit, the bank can proceed with internet banking, providing a physical or virtual token (mobile). The token is to be able to initiate the transaction (maker) and approve the transaction (approver).

Corporate Card

Unfortunately, not all banks provide corporate debit cards. Some banks provide only credit cards and require some high guarantee for a small or starting business. Banks like Permata or BNI provide corporate debit cards, which can be useful to be able to withdraw cash instead of going to the bank. Some banks even require you to pay for a chequebook to be able to withdraw your own money at the counter.

The traditional banking system is improving a lot in Indonesia and has a lot of innovation. However, the online banking system with corporate banks is still not user-friendly, intuitive and difficult to use for an initiative. Some providers have emerged to provide alternative banking.

Also read: Planning to Move to Bali? Here’s Your Document Checklist

Online Banking

While Indonesia has a big network of banks (BNI, OCBC, Permata, Mandiri, BCA, BRI, etc), new actors have emerged to provide alternative banking solutions (Aspire, for example). Those alternative banks have a user-friendly approach with virtual bank accounts and virtual debit cards.

Those neo-banks offer a competitive approach with reduced banking fees, payroll solutions and a multi-currency approach. You can easily invite collaborators to log in and give them full or limited access to the system.

The inconvenience is the inability to withdraw cash for some payments or corporate expenses.

We suggest combining different bank accounts, offering more flexibility in your corporate bank account management.

EDC and Payment Gateway in Indonesia

open bank account in indonesia (payment gateway)

Payment Gateway

For some companies, being able to accept payment online by credit or debit card is crucial. However, some providers, such as Stripe, are not able to operate in Indonesia. Other providers have entered the market, such as (Xendit) offering alternative payment solutions in IDR. Those payment gateways can be connected to your website and your bank account once the provider settles the payment. The fee is between 2 and 3%, depending on the service provider.

EDC Machine

For any restaurant, shop or commerce, having an EDC machine (electronic data collector, aka a credit card swipe) is important. Those machines collect the payment from the clients’ cards. All banks provide their own EDC machine, and it is not rare to see 5 or 6 machines in a shop or restaurant. The reason for so many machines is the fee charged by the bank. Indeed, banks charge the client (the company) a different percentage if the payment is made with a card from a bank that is different from the EDC provider.

It is not rare to see in Bali businesses applying 2 or 3% surcharge when the clients, tourist want to pay by credit card. This practice is to avoid the charge of the EDC and also use cash to reduce tax payments.

Important: As a business, it is totally illegal to charge clients extra for payment by debit or credit card. Bank of Indonesia has recalled several times that banks and businesses should stop charging final clients when they pay with a card. Businesses charging clients can be reported, and fines can be applied to the business.